Just like mortgages, credit cards, and other type of financial transactions, that require underwriting; Credit Scores are a key determining factor within the auto insurance underwriting process as to whether a prospective customer is an acceptable risk. The Credit Score has a significant impact on determining the premium charged to an individual. People with higher credit scores are quoted significantly lower premiums than prospective customers with low credit scores.


Our client offers certain insurance products based on the prospect’s Credit Score. Our client’s IT systems are equipped to accept a credit score and perform the necessary calculations required to determine premiums based on that score.
However, a review of the data showed there were a disproportionately high number of customers with “excellent” credit ratings. The incorrectness of this data could have severe ramifications on the business in terms of premiums collected and risk.


Y&L determined the best solution to this problem was to build a real-time communication mechanism between the client’s system and the credit score vendor system. Automating the verification of credit score data would ensure accuracy.


This integration ensured that accurate credit scores were used to calculate premiums. This had a dual impact of attracting more “good risk” customers by offering lower premiums, and repell “bad risk” customers by quoting higher premiums.
The long term effect will be a reduction in the company’s overall risk exposure while allowing the company to become more competitive.


Y&L’s philosophy is information technology can transform businesses. We believe technology is a tool companies can use to do their business faster and more economically.
In short, technology, if designed and implemented correctly is a business accelerator, as well as competitive differentiator.
At Y&L, we blend business expertise, domain knowledge and technical prowess to deliver optimal solutions; so businesses can become more efficient, nimble, and competitive.
We have been transforming government agencies and commercial businesses worldwide since 1999.